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Energy

Chesapeake Energy Secondary Priced At Slight Discount (CHK)

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By Douglas A. McIntyre Published
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Chesapeake Energy Corporation (NYSE: CHK) has priced a public secondary offering of 20 million shares of common stock at $45.75 per share.  Before any overallotments and before fees, the net proceeds of this deal come to $915 million.

Chesapeake announced this sale under a shelf registration just on Wednesday.  The company intends to use net proceeds initially to repay outstanding debt under its revolving bank credit facility, which it notes may be re-tapped from time to time to fund its recently announced drilling and land acquisition initiatives.

Deutsche Bank, Banc of America Securities, and Lehman Brothers were listed as the joint book-running managers in the underwriting.

On Wednesday, shares closed at $47.36.  Yesterday, shares closed at $46.10.  Shares are indicated at $46.00 in pre-market trading this morning, slightly above the $45.75 pricing of the secondary offering.  Chesapeake’s 52-week trading range is $30.81 to $49.87 and its market cap now sits at $23.7 Billion. 

Jon C. Ogg
March 28, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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